OSLO, NORWAY: Norwegian Air, one of Europe’s leading low-cost airlines, announced today its fourth quarter and full-year results for 2023, showing the highest operating profit and margin in its history. The company also completed the acquisition of Widerøe, a regional carrier in Norway, to expand its network and diversify its operations.

According to the company’s press release, Norwegian delivered an operating profit (EBIT) of NOK 2,232 million for the full-year of 2023, up from NOK 1,686 million in 2022. The operating margin was 9 percent, compared to 7.5 percent in the previous year. The company attributed its strong performance to its ability to reduce capacity and adjust to lower demand during the winter season, as well as to its operational excellence and customer loyalty.

For the fourth quarter of 2023, the company reported an operating profit (EBIT) of NOK 328 million, down from NOK 388 million in the same period of 2022. However, the company improved its liquidity position to NOK 9.5 billion at year-end, up from NOK 8.6 billion at the end of the third quarter. The company also maintained a high load factor of 84.4 percent and a high punctuality of 81.5 percent in the quarter, ranking among the best carriers in Europe.

The company’s fleet consisted of 87 aircraft at year-end, of which 20 were the latest technology 737 MAX 8 aircraft, which offer lower fuel consumption and emissions. The company also completed the acquisition of Widerøe, a regional carrier with 48 aircraft, mainly turboprops, that operates in Norway and some international destinations. The acquisition will allow Norwegian to link complementary route networks, create operational synergies, and benefit from Widerøe’s public service obligation (PSO) contracts.

Geir Karlsen, CEO of Norwegian, expressed his satisfaction with the results and the acquisition. “I am thrilled to announce that Norwegian achieved all-time high profits for 2023. Our loyal customer base continued to grow, and we are grateful for their trust in us. Colleagues across the entire company have worked tirelessly to ensure operational excellence, ranging from the planning of our network and services to everyday execution,” he said.

“We are now in the process of onboarding Widerøe as part of the Norwegian group. I very much look forward to exchange decades of experience between the two airlines. This will enable us to go to the market with an improved and more comprehensive offering to our customers,” he added.

Norwegian is one of the largest low-cost airlines in Europe, operating over 500 routes to more than 150 destinations in Europe, North Africa, the Middle East, Asia, and the Americas. The company has been awarded several accolades for its service, innovation, and sustainability, such as the Skytrax World Airline Awards, the CAPA Aviation Awards, and the Air Transport World Awards.

Dividend and outlook

The Board of Directors intends to propose a dividend of NOK 0.60 per share for 2023 to the annual general meeting in 2024. Distribution of the dividend is subject to approval from holders of the company’s debt instruments. If such approval is not obtained, the Board proposes to set aside the dividend amount in a fund for later distribution.

Current booking trends are encouraging, and the duration of the booking curve has improved compared to the two previous years, giving improved visibility. For the full-year of 2024, Norwegian forecasts an overall production (ASK) of around 36,000 million seat kilometres, corresponding to a growth of approximately 12 percent from 2023. The company projects profits for 2024 to improve and is currently expecting an operating profit (EBIT) to be in the range of NOK 2.5 to 3.2 billion, given certain assumptions.

Norwegian’s customers highly value the airline’s strong punctuality and the attractive and growing route network. The acquisition of Widerøe will further ensure that Norwegian remains a preferred travel partner throughout the Nordics.

For the remainder of the winter season, Norwegian will keep a reduced capacity level that matches the seasonally lower demand. From March and onwards, the company will ramp-up capacity into the busy travel season. The company is growing its fleet to approximately 90 aircraft for the peak summer 2024 season.